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Upturn AI SWOT - About
ERIC 
Telefonaktiebolaget LM Ericsson B ADR (ERIC)
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Upturn Advisory Summary
04/01/2025: ERIC (3-star) is a SELL. SELL since 3 days. Profits (-8.36%). Updated daily EoD!
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 4.61% | Avg. Invested days 44 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 26.26B USD | Price to earnings Ratio - | 1Y Target Price 7.54 |
Price to earnings Ratio - | 1Y Target Price 7.54 | ||
Volume (30-day avg) 22236054 | Beta 0.31 | 52 Weeks Range 4.61 - 8.76 | Updated Date 04/1/2025 |
52 Weeks Range 4.61 - 8.76 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 3.40% | Basic EPS (TTM) - |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.01% | Operating Margin (TTM) -6.12% |
Management Effectiveness
Return on Assets (TTM) 1.79% | Return on Equity (TTM) 0.39% |
Valuation
Trailing PE - | Forward PE 16.95 | Enterprise Value 24752343752 | Price to Sales(TTM) 0.11 |
Enterprise Value 24752343752 | Price to Sales(TTM) 0.11 | ||
Enterprise Value to Revenue 0.98 | Enterprise Value to EBITDA 15.08 | Shares Outstanding 3070919936 | Shares Floating 2932084979 |
Shares Outstanding 3070919936 | Shares Floating 2932084979 | ||
Percent Insiders - | Percent Institutions 13.29 |
Analyst Ratings
Rating 3.67 | Target Price 14.76 | Buy 5 | Strong Buy 1 |
Buy 5 | Strong Buy 1 | ||
Hold 2 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Telefonaktiebolaget LM Ericsson B ADR
Company Overview
History and Background
Telefonaktiebolaget LM Ericsson, founded in 1876, is a Swedish multinational networking and telecommunications company. It evolved from manufacturing telegraph equipment to becoming a major player in mobile network infrastructure.
Core Business Areas
- Networks: Provides radio access networks (RAN), transport networks, and core networks for mobile operators and other network service providers.
- Cloud Software and Services: Offers cloud-native software, professional services, and managed services for network operators.
- Enterprise Wireless Solutions: Provides private 5G networks and other wireless solutions for enterprises.
- Ericsson Global Communications Platform: Provides a low code communications platform that enables developers to build and monetize communications applications.
Leadership and Structure
The company is led by CEO Bu00f6rje Ekholm. It operates with a matrix organizational structure based on business areas and geographical regions.
Top Products and Market Share
Key Offerings
- 5G RAN Solutions: Ericsson's 5G Radio Access Network (RAN) solutions are a core offering, enabling mobile operators to deploy and manage 5G networks. Ericsson has a strong market share in this segment (estimated 35-40%). Key competitors are Nokia (NOK), Huawei, and Samsung. Revenue from this product is a significant portion of total network sales.
- Core Network Solutions: Provides the core network infrastructure that supports mobile services. Key competitors are Nokia (NOK), Huawei, and ZTE. No specific market share data available, but it's a top revenue earner of the company.
- Managed Services: Ericsson offers managed services to operate and maintain mobile networks for operators. Competing with companies like Nokia, Accenture, and IBM. No specific market share data available.
Market Dynamics
Industry Overview
The telecommunications industry is currently focused on 5G deployment, network upgrades, and cloudification. There is also increasing demand for private 5G networks in the enterprise sector.
Positioning
Ericsson is a leading provider of mobile network infrastructure, with a strong position in 5G technology. Its competitive advantages include its global presence, strong R&D capabilities, and end-to-end solutions.
Total Addressable Market (TAM)
The global telecom services market is expected to reach approximately $1.2 trillion by 2027. Ericsson is positioned to capture a significant share of this TAM, particularly in the 5G infrastructure and cloud services segments.
Upturn SWOT Analysis
Strengths
- Leading position in 5G technology
- Strong R&D capabilities
- Global presence and established customer base
- End-to-end solutions portfolio
Weaknesses
- High operating expenses
- Exposure to geopolitical risks
- Past bribery scandals damaged reputation
- Dependence on a few large customers
Opportunities
- Expansion of 5G deployments globally
- Growth in private 5G networks for enterprises
- Increasing demand for cloud-based network solutions
- AI integration in network operations and services
Threats
- Intense competition from Nokia, Huawei, and Samsung
- Geopolitical tensions impacting supply chains
- Technological disruptions and new entrants
- Economic downturns affecting operator spending
Competitors and Market Share
Key Competitors
- NOK
- SMCI
- CSCO
Competitive Landscape
Ericsson faces intense competition from Nokia, Huawei, and Samsung. Ericsson's competitive advantages include its strong 5G portfolio and global presence. Huawei's access to some markets remains constrained. Samsung is making inroads in some regions.
Major Acquisitions
Vonage
- Year: 2022
- Acquisition Price (USD millions): 6200
- Strategic Rationale: The acquisition of Vonage aims to expand Ericsson's presence in the enterprise space and provide a platform for communications as a service (CPaaS).
Growth Trajectory and Initiatives
Historical Growth: Ericsson's growth has been influenced by the cyclical nature of the telecom industry, with peaks during major technology upgrades like 4G and now 5G.
Future Projections: Analysts project moderate revenue growth driven by 5G deployments and cloud services.
Recent Initiatives: Strategic initiatives include strengthening its 5G portfolio, expanding cloud services, and focusing on cost efficiency.
Summary
Ericsson is a major player in the 5G infrastructure market, benefiting from its technological expertise and global reach. While competition is intense, its strategic acquisitions and focus on cloud services position it for future growth. However, it needs to carefully manage its operating expenses and geopolitical risks to maintain its competitive edge. Ericsson's financial performance is subject to fluctuations due to cyclical nature of the telecom industry.
Similar Companies
- NOK
- QCOM
- XLNX
- MTKYY
- CSCO
Sources and Disclaimers
Data Sources:
- Ericsson Investor Relations
- Industry reports
- Analyst estimates
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market conditions are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Telefonaktiebolaget LM Ericsson B ADR
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1989-09-28 | CEO - | ||
Sector Technology | Industry Communication Equipment | Full time employees 93897 | Website https://www.ericsson.com |
Full time employees 93897 | Website https://www.ericsson.com | ||
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware and software solutions, and related service offerings. This segment also provides radio access network (RAN) products consists of antennas, radios, baseband (RAN compute), and RAN software; RAN compute indoor and outdoor units supporting macro and micro sites; transport solutions; active and passive antennas, as well as antenna line devices, system accessories, and feeder system; and customer support, network tuning, and intelligent deployment services. The Cloud Software and Services segment provides core networks, business and operational support systems, network management and cognitive network solutions, and managed network services. The Enterprise segment offers global communications platform; wireless connectivity for vehicles, remote locations, and IoT applications and devices; and private cellular networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. It has operations in North America, Europe, Latin America, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
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